2024-10-02 12:19:39
Ecuador will implement a band system to adjust the price of extra and ecopaís gasoline. This mechanism will allow variations depending on the price of oil.
It is planned that at the end of June 2024 the subsidies for extra gasoline and ecopains in Ecuador. The first increase will be 26 cents per gallon and later a band system with which the precio of these fuels monthly.
What does the band system for setting gasoline prices consist of?
The Deputy Minister of Economy, María Cristina Avilésexplained how the price stabilization system will be applied or band systemwhich will be implemented by the government of Daniel Noboa to eliminate the subsidy at extra gasoline and ecocountry.
The first step will be the increase of 26 cents on the dollar in these fuels. Thus, extra and eco-country gasoline will go from $2.46 to $2.72 per gallon. but this price will not be fixed in time.
After this first upload, a band systemwhich will allow the price to be adjusted monthly, according to the fluctuation of the oil price in the international market.
Limits of the gasoline price band system
This price stabilization mechanism will have limits, added Avilés. Each month the price of gasoline cannot increase by more than 5% compared to the previous month and, likewise, it will not decrease by more than 10% from the previous month.
As an exampleif in July extra gasoline and ecocountry They rise, as expected, to 2.72 dollars per gallon, in August it could go to 2.85 dollars, if oil rises. And if it continues to rise, in September it could cost $2.99 a gallon.
On the other hand, if registers a drop in the price of crude oil In the international market, gasoline would drop from 2.72 in July to 2.45 dollars in August. And if the price of oil continues to fall, gasoline prices could go to 2.20 per gallon in September. Everything will depend on the behavior of WTI oil, he explained Oswaldo Erazosecretary of the National Chamber of Distributors of Petroleum Derivatives of Ecuador (Camddepe).